Question
The owner of Hamilton hotel would like a cost formula that relates the hotel maintenance cost for a month to a number of occupancy days
The owner of Hamilton hotel would like a cost formula that relates the hotel maintenance cost for a month to a number of occupancy days for that month. Using high low method to establish the fixed and variable components of maintenance costs, find out Variable cost, Fixed cost and express as Y= F + Vx (10 marks)
| Month | Occupancy days | Maintenance cost |
| January | 5600 | $7900 |
| February | 7100 | $8500 |
| March | 5000 | $7400 |
| April | 6500 | $8200 |
| May | 7300 | $9100 |
| June | 8000 | $9800 |
| July | 6200 | $7800 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
An Introduction To Modern Financial Reporting Theory
Authors: Brian A Rutherford
1st Edition
9780761966074
